You can refinance your mortgage as often as you want. Financing
companies are more than willing to process your loan application, reaping the benefits of closing costs. You, however, only want to refinance when
you can get a real benefit from the deal. Most often that means a lower
rate, but there other instances as well.
Benefits To Refinancing With Bad Credit
With poor credit you won't be able to get the best available rates, but
you can get close. Most subprime lenders offer financing just 1% to 3%
above market rates. If you have had severe financial troubles in the
last 24 months, like a foreclosure or bankruptcy, expect rates to be much
higher.
So even with an adverse credit history, you may still be able to lower
your rates. The general rule is that if there is a rate difference of 2
or more points, then it's worthwhile to refinance.
If you are struggling with cash flow issues, refinancing can help you
lower your monthly payments, freeing up needed cash. Lower rates will
reduce your payments, but so will extending the length of your loan.
Cashing out part of your equity during refinancing can help you secure
low rate financing, usually at half the rate of a credit card. With the
additional credit, you can consolidate bills or make needed home
repairs.
The Difference Is In The Lender
Selecting the right lender is just as important as getting the right
loan terms. Financing companies do not all charge the same rate on
mortgages. So you can save yourself hundreds, even thousands, by comparing
loan offers.
With online financial companies, you can request loan quotes without
hurting your credit score with repeated credit inquires. Based on the
information you provide, potential lenders send you a loan estimates in
minutes. With mortgage broker sites, you can receive multiple offers to
make side-by-side comparisons.
Applying online for refinancing can also qualify you for loan discounts
with some lenders. Just remember that any rate quoted isn't guaranteed.
With rates fluctuating daily, your rate can only be locked in once your
application is approved.
View our recommended lenders for an excellent mortgage refinance quote.
Also, check out our recommended lenders for refinancing your home with poor credit, or view our recommended lenders for a reputable home equity loan company online.
